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How do I close the financial year?

Create the new Financial Year before the old one ends, close the old year's periods, and let the Balance Sheet carry profit to the Retained Earning Account. No screen posts a closing entry: Financial Year Closing only keeps a record. Post a closing voucher on General Entry if your auditors want one.

Screen
General Ledger › Fiscal › Financial Year; General Ledger Setting; General Entry
Who
The chief accountant
Takes effect
On save of each step
Needs first
The last month closed as in How do I close a month?

Steps​

  1. Create next year on Financial Year: pick the calendar, Date From fills with the day after the old year.
  2. Check Retained Earning Account on General Ledger Setting. The Balance Sheet shows every revenue and expense balance under it.
  3. Close every period of the old year, Opening and Closing periods included. Add special conditions for audit adjustments.
  4. Optional: post a closing voucher on General Entry: debit the revenue accounts, credit the expense accounts, the difference to retained earnings, dated the last day of the year.

Check it worked​

  • The new year's first document saves; the old year's documents are refused.

If something looks wrong​

  • "Financial Year not found." in the new year: step 1 is missing.
  • Saving Financial Year Closing changed nothing. It posts nothing by design.